What is in the Bill?

Formally titled “A Bill for an Act to Ensure Proper Control of Usage of Artificial Intelligence (AI) Technology in Nigeria and for Related Matters, 2023,” the legislation was sponsored by Representative Sada Soli and received its first reading at the House of Representatives on November 22, 2023.

At its core, the bill proposes something unprecedented in the African tech landscape: mandatory registration and licensing for anyone developing or using AI technologies in Nigeria. To oversee this ambitious regulatory framework, the bill would establish the National Artificial Intelligence Council as the country’s supreme authority on AI development and deployment.

A Different Path from Regional Neighbors

What makes Nigeria’s approach particularly noteworthy is how sharply it diverges from other African nations’ AI strategies. Countries like Mauritius, Egypt, and Kenya have opted for frameworks that prioritize enabling innovation through research funding, capacity building, and infrastructure development. Their philosophy appears to be: build the ecosystem first, regulate as needed.

Nigeria, by contrast, is leading with regulation. The bill emphasizes control and compliance, requiring developers and users to navigate registration and licensing requirements before deploying AI systems. It’s a “permission-first” approach in a field that has historically thrived on experimentation and rapid iteration.

The Devil in the Details

As with any sweeping legislation, the concerns lie in the implementation details. Three issues stand out:

1. Overly Broad Definitions

The bill’s definition of an “AI system” is expansive enough to potentially capture a wide spectrum of digital technologies from basic automation software and simple algorithms to sophisticated machine learning systems. This could inadvertently bring everyday business tools under regulatory scrutiny, creating compliance burdens for companies that aren’t even working on what most would consider “artificial intelligence.”

2. Bureaucratic Barriers to Entry

For Nigeria’s vibrant startup ecosystem, the registration and licensing process could prove particularly challenging. Small innovators and early-stage companies; the very entities most likely to drive groundbreaking innovation may lack the resources, legal expertise, or time to navigate complex approval procedures. In a field where speed to market can determine success or failure, regulatory delays could be fatal to promising ventures.

3. Regulatory Overlap and Confusion

Nigeria already has several regulatory bodies with technology-related mandates: the National Information Technology Development Agency (NITDA), the Nigeria Data Protection Commission (NDPC), the Nigerian Communications Commission, and the Central Bank of Nigeria for fintech applications. The proposed National Artificial Intelligence Council would add another layer, potentially creating jurisdictional conflicts, duplicative requirements, and confusion about which authority governs which aspect of AI development.

The Innovation vs. Regulation Dilemma

There’s no question that AI regulation is necessary. The technology poses genuine risks around privacy, bias, misinformation, and societal disruption. Governments have a legitimate interest in ensuring AI systems are safe, ethical, and aligned with national values.

But effective regulation requires striking a delicate balance. Overregulate too early, and you risk driving innovation underground or offshore. Nigeria’s tech talent might simply build their AI solutions elsewhere, depriving the country of economic benefits and technological advancement. Underregulate, and you leave citizens vulnerable to the very real harms AI can cause.

The question Nigeria faces is whether mandatory registration and licensing is the right tool for the job particularly at this stage of the technology’s development in the country.

What Happens Next?

The bill remains in the legislative process and has not yet been passed into law. This provides an opportunity for stakeholders including developers, civil society organizations, academics, and the business community to engage with lawmakers and shape the final legislation.

Several African tech hubs have already shown that innovation-friendly policies can coexist with responsible governance. Nigeria has a chance to learn from these examples and craft an approach that protects citizens without unnecessarily constraining the developers and entrepreneurs who could position the country as an AI powerhouse on the continent.

The goal shouldn’t be to choose between innovation and regulation, but to find the sweet spot where both can thrive. Nigeria’s AI future and its place in the global tech economy—may well depend on getting this balance right.